Real Estate
Reducing Levies and Fast-Tracking Approvals: The Key to Mid-Income Housing Growth
By GeoSquare News Desk · Published 2024-06-17
The Indian real estate sector is facing a paradox. While premium and luxury housing are witnessing strong growth, and the Central Government is launching schemes to provide housing for lower-income groups, the mid-income housing segment is struggling due to high interest rates and lower supply in top cities. To address this issue, top property developers and consultants are urging state governments to reduce levies and fast-track approvals for mid-income housing projects.
Niranjan Hiranandani, managing director at Hiranandani group, emphasized the need to reduce costs and approvals, which constitute over 50% of the cost of a house in big cities. He suggested that states follow Maharashtra's example of cutting stamp duty during the COVID-19 pandemic, which improved residential sales in the state.
Sanjay Dutt, managing director and CEO at Tata Realty & Infrastructure, stressed the need for single-window clearance for projects, citing the complexity of the approval process. He pointed out that developers need to secure approvals from various government agencies, including the environment department, Archaeological Survey of India, and Ministry of Defence, which can lead to extended project timelines and increased costs.
Gaddipati Hari Babu, president of National Real Estate Development Council, highlighted the issue of high levies, with many states charging 12-14% on the selling price. He advocated for reducing levies to a maximum of 10-12% to boost sales and increase revenue for states.
Anuj Puri, chairman of Anarock Property Consultants, emphasized the need for reduced stamp duties and registration fees to increase demand and make housing more affordable. He suggested that streamlining lending procedures and providing flexible repayment options and subsidies for first-time homebuyers could also increase demand and promote faster development in the housing market.
Information
National Real Estate Development Council (NAREDCO) is a non-profit organization that represents the real estate industry in India.
Hiranandani group is a leading real estate developer in India, known for its luxury and premium housing projects.
Tata Realty & Infrastructure is a subsidiary of the Tata group, a leading business conglomerate in India.
Anarock Property Consultants is a leading real estate consultancy firm in India.
NAREDCO is a national-level organization that aims to promote the development of the real estate sector in India. Hiranandani group is committed to providing high-quality housing solutions to its customers. Tata Realty & Infrastructure is dedicated to developing innovative and sustainable real estate projects. Anarock Property Consultants provides expert advice and solutions to its clients in the real estate sector.